Informist, Thursday, Nov 16, 2023
By Maitri Seth
MUMBAI – Traders bought call option contracts of near 19900 strike prices in hopes that the Nifty 50 might breach the 20000-point level during the next week. Analysts’ views were also in line with market expectations, as they think the overall sentiment is bullish.
Among contracts expiring next week, premium on call options of 19900 strike prices rose 70.7% to 59.40 rupees. Heavy open interest buildup was also seen on call options of 20000 strike prices, premium on which rose to 9.15 rupees. Significant change in open interest was also seen at 20500 points of the index. However, premium on these levels were flat.
Bullishness was also seen across put option contracts, where traders sold their bets at 19700 to 19800 levels, expecting that the Nifty 50 might not sustain below these levels during the next week. Premium on the 19700 strike prices fell 47.4% to 56.10 rupees, while that of 19800 slipped 45.2% to 89.30 rupees.
Deven Mehata, technical and derivative analyst at Choice Equity Broking, said that further gains are likely if the Nifty 50 sustains above 19800 points. However, prior to the run towards 20000 points, the market might witness some mild correction due to profit booking. A small correction of 100 points is likely in the next sessions before the upside, said Mehata. Today, the Nifty 50 closed 0.5% higher at 19765.20 points.
“For the bulls, 19600 would act as a key support levels while 19900 could act as an important resistance zone. On the flip side, below 19600, traders may prefer to exit out from the trading long positions”, said Shrikant Chouhan, head of research at Kotak Securities.
Meanwhile, among contracts expired today, traders sold both call and put options near 19800 points as the Nifty 50 neared its closing of 19765.20 points.
On the futures front, the November futures contract of the Nifty 50 closed at a premium of 69.80 points to the spot index today. Open interest in the contract fell by 1.2% to 11.27 mln, according to provisional data.
–Nifty 50 Nov closed at 19835, up 111.70 points; 69.80-point premium to spot index
–Nifty 50 Dec closed at 19933.45, up 102.50 points; 168.25-point premium to spot index
–Nifty 50 Jan closed at 20051.40, up 117 points; 286.2-point premium to spot index
Bajaj Finance, Tata Motors, HDFC Bank, Tata Consultancy Services, and Reliance Industries were among the most actively traded stocks today. End
Edited by Aditya Sakorkar
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis
